XYZ Co LTD has taken a loan of 30 Lakhs to be paid within 5 years from United Bank of India. During the 3 years, 15 Lakh principal along with interest have been repiad.
Now the directors have decided to pay-off the balance principal of 15 at one go. As the company is strong, the bank manager is resisting this payent and insist that the loan schedule must be followed, which the directors cant follow due to high rate of interest.
What are the banking norms regarding such cases? The company is willing to pay but the bank is not ready to accept. This is a strange phenomenon.
What are the solutions?